Peter Jones, Managing Director at Prological, talks to MHD about the future of sustainable logistics in Australia, including the challenges of securing government grants for EVs and the importance of independent analysis.
With Prological as a supply chain consultancy firm having a strong foothold in the area of sustainability, its founder and Managing Director, Peter Jones, knows what steps both industry and government might consider to ensure the future is greener than ever.
The urgency for sustainable solutions in logistics has never been more pressing. The Australian government’s recent initiatives underscore a pivotal movement towards greener logistics, marked by grants and projects that could reshape sectors of the industry.
In particular, Team Global and Australian National Courier (ANC) have emerged as frontrunners in this transformative journey, securing funding to implement ‘industrial scale’ trials of electric trucks.
PIONEERING ELECTRIC VEHICLE INTEGRATION
Peter offers insights into the challenges and opportunities these developments present.
Team Global’s $190 million federal grant is a testament to this evolution, a significant step towards establishing a battery-electric or hybrid-electric fleet at an industrial scale.
Historically, electric vehicle (EV) initiatives have been limited to small ‘prototype’ environments, but this funding catalyses a paradigm shift, enabling Team Global to navigate the complexities of operating EVs at scale within the Australian context.
NAVIGATING THE CHALLENGES
Peter refers to two primary challenges Team Global faces: acquiring $190 million worth of trucks and the global battery supply constraints.
“Battery electric cars are prioritised in both allocation of resources (manufacturing and materials) and
in receiving transitional economic assistance from governments globally,” he explains.
“This prioritisation for cars over trucks has been in part driven by political gravitas and domestic recharging conveniences, further complicating the supply chain for industrial vehicles.”
Australia’s right-hand drive vehicle requirements have added another layer of complexity, necessitating additional research, development, and safety approvals by European, Asian and North American EV truck manufacturers
Peter remains optimistic about Team Global’s prospects, acknowledging the grant as a “fantastic” opportunity for an Australian company to conduct an industrial-scale trial of electric vehicles.
This sentiment extends to ANC, which has received $45 million from a similar grant pool for Project
Spark, aimed at their last-mile delivery fleets.
Electric vehicles, with their inherent advantages in short-range distribution, align well with this initiative, promising a cost-effective and sustainable solution to urban logistics.
If successful, these initiatives could see metropolitan rigid vehicle fleets transitioning to sustainable options over the next decade, contingent on vehicle availability.
THE ROLE OF HYDROGEN AND FUTURE TECHNOLOGIES
However, as Peter points out,Australia’s logistics landscape is dominated by long-distance travel,a domain where battery-electric vehicles currently fall short.
“We’re waiting for other technologies to catch up,” hesays, emphasising the potential of hydrogen as an alternative fuel and potentially better suited to high-mass and long-range vehicles.
New South Wales has already embarked on initiatives aimed at hydrogen trucks, due to grants aimed at developing a supporting network and creating a test fleet at diesel operating parity.
These trials are set to commence operations in 2026.
HARNESSING RENEWABLE ENERGY IN WAREHOUSES
The broader logistics ecosystem
also presents opportunities for sustainability, particularly within warehouse environments, according to Peter.
“If every warehouse in Australia was covered in solar panels, we would produce up to seven times Australia’s daily electricity requirement,” he says.
However, retrofitting existing buildings poses challenges due to structural limitations and dynamic loading changes.
The solution lies in forward- thinking design, ensuring new facilities are equipped to maximise sustainable energy production and storage, not just for today, but also into the future.
Warehouse stock has an average life cycle in Australia of approximately 45 years. Therefore, whatever is designed into a new building in 2024, is close to as good as that building will get until 2069, when it is knocked down and rebuilt.
Prological, a company at the forefront of this movement, has collaborated with the University
of Wollongong’s Sustainable Building Research Centre (SBRC) to pioneer sustainable industrial real estate models.
Its research indicates that solar and battery systems can power industrial operations and vehicle fleets with a return on investment of less than five years in some cases.
This time frame is also compressing as battery technology improves in capability and becomes more cost effective as well.
“Our research picked up what was the global benchmark, our research outcomes… have now become the global benchmark,” says Peter.
This model provides a roadmap for businesses to design facilities that accommodate future
energy requirements from the outset, mitigating the need for costly retrofits, if engineering requirements can even be met.
ADDRESSING IMPLEMENTATION CHALLENGES
Despite these advancements, Australian businesses face several challenges in implementing sustainable logistics solutions.
“The first thing is that they’re primarily being sold systems by systems providers, rather than having systems designed for them,” explains Peter.
Independent analysis and tailored solutions are crucial for optimising sustainability initiatives. Furthermore, he says, the need for consistent government policy is paramount.
“We’ve got to get bipartisan agreement on both the targets, medium and long term, and the macro processes to get there,” says Peter.
GOVERNMENT INITIATIVES AND POLICY
Government initiatives play a pivotal role in fostering sustainable logistics. Beyond grants and funding for industrial trials, policies promoting road-to-rail conversions could reduce carbon emissions.
The Inland Rail project, aimed at improving connectivity between major cities, exemplifies such initiatives.
Additionally, establishing standards for sustainability in industrial real estate would help to drive the adoption of green practices across the sector.
THE IMPORTANCE OF CARBON FOOTPRINT REPORTING
Measuring and reporting carbon footprints is another critical aspect for logistics companies.
“Carbon is like litter in the air,” Peter says.
This highlights the imperative to reduce emissions (air borne litter) irrespective of political beliefs.
Businesses increasingly recognise the commercial importance of sustainability, driven by the expectations of global partners and customers. Transparent carbon reporting not only meets these expectations, but also positions companies as leaders in the transition to a greener economy.
A SUSTAINABLE FUTURE FOR AUSTRALIAN LOGISTICS
The landscape of logistics in Australia is undergoing a profound transformation, driven by a confluence of technological advancements, government initiatives, and industry leadership.
As Peter’s insights illustrate, the journey towards sustainable logistics is fraught with challenges but also brimming with opportunities.
With concerted efforts from businesses, government, and research institutions, Australia can pioneer a future where logistics not only fuels economic growth but also champions environmental stewardship.
The road ahead is long, but the destination promises a greener, more sustainable world for future generations. ■
If you would like to discuss any area of this article, please reach out to Peter Jones at Prological.